Six Sigma and Lean's bodies lie smouldering and decomposing in the ashes of the 20th century. A revolution is upon us. Some are wise enough to have seen it coming, some have only recently found it and the others, well, they'll soon adapt or die.
What I am talking about is an approach that is so radically different from the ways that we have traditionally approached process improvement that it forces you to totally alter your current mindset. It is an approach that is the secret weapon of some of the world's greatest companies such as Google, Apple and Virgin.
It's called Outside-in.
On paper outside-in sounds like a "no brainer" - it's about looking at process from the customer's experience. I'm sure you think you already do that, but if you aren't using outside-in already I can categorically tell you that you aren't. Outside-in uses a method to systematically look at the customer's experience from end to end, rather than looking at improving the customer's experience by altering internal processses - this is inside-out thinking. Whereas inside-out thinking puts a bandage on the effect, it doesn't eliminate the cause - the wound still bleeds.
As organisations we have become crippled by our internal processes. We've become so entwined in what we do day to day we've forgotten why we exist - to serve our customer - to give them what they need, to give them what they want and sometimes to give them what they don't know they need yet! The customer is our reason for being, without them we cease to exist, yet through our bureaucracy and our bulk we become a bloated beast of burden - unable to move rapidly to meet the needs of the lightning fast pace of life around us. In the end, we sink and die whilst the nimble climb higher and higher.
When we use Outside-in to optimise process we achieve three things simultaneously - We reduce costs, improve the customer experience and as a result improve revenue. This we call "the triple crown".
Sounds to good to be true? Well, it's not. And here's why:
- Whilst Marks and Spencer flounder in the UK, Zara are achieving world domination
- Whilst Delta and United airlines are dying in the states, Southwestern airlines is flourishing
- Whilst Best Buy expand, their major competitors have gone bust
- Whilst Nokia try to sell outdated phones Apple kill the market with the iPhone
- Tesco has surged to be the no1 supermarket in the UK, now bidding to buy the former no 1
- Ryanair become the most profitable airline in Europe whilst BA implode
- Whilst british banks go bust, bank Santander is posting huge profits
What do these victors have in common? They all use Outside-in to achieve the "triple crown".
So, do you think Lean and Six Sigma will help you to achieve all that? Thought not.
Welcome to the revolution.
- TPN
